| Title： |
Taiwan Stock Exchange Corporation Specific Standards and Procedures for Determining Eligibility of Securities for Margin Purchase and Short Sale Transactions(2016.03.08) |
| Date： |
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2
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For the purposes of these Standards and Procedures, the following terms shall have the following meanings:
- Subject securities:
- Common shares that have been listed on the TWSE for 6 months and have a net worth per share of not less than par value. However, for shares issued by a TWSE primary listed company with no par value or a par value other than NT$10 per share, the shares shall have been listed on the TWSE for 6 months, with no accumulated deficit posted in the issuer's financial report.
- Taiwan depositary receipts that have been listed on the TWSE for 6 months, with no accumulated deficit posted in the issuer's financial report.
- Beneficial certificates not traded in foreign currency that have been listed on the TWSE for 6 months. However, the 6-month listing requirement does not apply to beneficial certificates of an exchange-traded fund ("ETF beneficial certificates"), nor to offshore ETF beneficial certificates, nor to futures ETF beneficial certificates.
- Review date: The review date is the date on which the exchange listing of a subject security reaches 6 full months. If it falls on a non-business day, it is moved back to the next business day.
- Net worth per share: Based on the balance sheet equity attributable to owners of the parent in the published and filed financial report, available as of the review date, for the most recent fiscal year.
- Accumulated deficit: With respect to shares issued by a TWSE primary listed company with no par value or a par value other than NT$10 per share, the accumulated deficit shall be based on the publicly disclosed and filed CPA-audited and attested annual financial report for the most recent fiscal year available as of the review date. With respect to Taiwan depositary receipts, the accumulated deficit shall be based on the CPA-audited and attested consolidated annual consolidated financial report or CPA-reviewed semi-annual financial report for the most recent period available as of the review date, prepared in compliance with the laws and regulations of the issuer's home country.
- Sampling period: The 90 business days preceding (and inclusive of) the review date constitute the sampling period, which is taken as the acquisition period for the data used in calculations.
- Sampled securities: TWSE listed common shares, Taiwan depositary receipts, and beneficial certificates that have not been placed under an altered trading method are the sampled securities, which serve as the basis for comparison with subject securities.
- Degree of price fluctuation: Refers to the average daily degree of price fluctuation (absolute value) as calculated during the sampling period for the subject securities, sampled securities, or securities of industry peers.
- Spread ratio: Refers to the ratio between: (a) the spread between the highest and lowest prices for the subject securities, sampled securities, or securities of industry peers, as calculated during the sampling period; and (b) the respective average prices thereof.
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